Question

18. What is the preferred dividend per share? a $100 C. $10 b. 10% d. $500,000 19. Ir Pepper Corporation cannot pay dividends, does it still owe the dividends to its preferred stockholders? a. Yes b. No 20. What are the most Preferred shares that Pepper Corporation can issue? a. 2,000,000 c. 500,000 b. 5,000 d. 25,000 C. d. Use the following choices to answer questions 21-25 Paid-in-Capital Account b. Current Liability Subtracted in the Stockholders' Equity Statement Cumulative Add to the beginning Retained Earnings on the Retained Earnings Statements 21. A special feature where preferred stock dividends are owed to stockholders if they are not paid. 22. Dividends Payable 23. Paid-in-Capital in excess of par-Common 24. Net Income 25. Treasury Stock EXTRA CREDIT (10 Max) 51. In a Statement of Retained Earnings, Dividends are a. Added b. Subtracted C. d. Multiplied Not on the statement 52. Common Stock Dividends Distributable is a a. Stockholders' Equity account b. Current Liability account

Answer 1

Solution 21:

A special feature where preferred stock dividends are owed to stockholders if they are not paid - Cumulative

Solution 22:

Dividend payable is current liability

Solution 23:

Paid in capital in excess of par - common - Paid in capital account

Solution 24:

Net income - Added to beginning retained earnings on the retained earning statement

Solution 25:

Treasury stock - subtracted in stockholder's equity statement.

Solution 51:

In a statement of retained earnings, dividends are subtracted.

Solution 52:

Common stock dividend distributable is a stockholder;s equity account.